Dubai – Qahwa World
Starbucks has reached a major agreement to sell a 60 percent controlling stake in its China operations to Hong Kong-based private-equity firm Boyu Capital for $4 billion. The partnership marks one of the largest foreign coffee-sector transactions in Asia, positioning both companies to accelerate Starbucks’ expansion in the world’s biggest branded coffee market.
China remains Starbucks’ most strategic growth region outside the United States. The company currently operates around 8,000 stores nationwide and aims to scale that number to 20,000 in the coming years. Boyu’s local experience and financial backing are expected to support Starbucks’ next phase of growth, particularly in lower-tier Chinese cities where coffee culture is rapidly expanding.
Under the deal, Starbucks will keep its Shanghai headquarters and retain 40 percent ownership of the new joint venture. It will continue to license its brand and intellectual property while maintaining control over store design, training standards, and product development.
Brian Niccol, Chairman and CEO of Starbucks, said the collaboration would strengthen the company’s presence in China:
“Boyu’s deep understanding of Chinese consumers and regional markets will help us reach new communities while staying true to our values of exceptional partner experience and world-class customer service.”
Founded in 2011, Boyu Capital manages investments across Hong Kong, mainland China, and Singapore. Its portfolio exceeds 200 companies, including leading Chinese names such as Mixue Ice Cream and Alibaba Group—one of Starbucks’ delivery partners in China.
Alex Wong, Partner at Boyu Capital, described the partnership as “a shared belief in the strength of the Starbucks brand and a commitment to local innovation and customer connection.”
Starbucks’ decision follows months of speculation since late 2024 about a potential sale of its China division. The move comes as the company continues to recover from pandemic-era declines, reporting four consecutive quarters of growth in 2025. In its fiscal fourth quarter ending September 28, 2025, Starbucks recorded $831.6 million in China sales, a 6 percent increase year on year.
With this new alliance, Starbucks seeks to reinforce its market leadership amid mounting competition from domestic rivals such as Luckin Coffee and Cotti Coffee—companies that have gained ground with value-driven strategies and aggressive store rollouts.
